Kurdistan Oil Production at Record Levels

According to the April 2015 report published by the Kurdistan Regional Government, KRG, Ministry of Natural Resources, KRG commitments under the 2015 Federal Budget Law have been met, and oil production has reached record levels.

According to an agreement on oil export and budget, reached last December between the KRG and the Federal Government of Iraq, Kurdistan Region is committed to export 550,000 bpd (barrels per day) in return for a budget entitlement close to one billion US dollars per month to be paid by the federal government.

The agreement was approved within the framework of the Iraqi Federal Budget Law for 2015.

In April, the Kurdistan Regional Government delivered to the Iraqi State Oil Marketing Organization (SOMO) a total 16,878,985 barrels for an average of 562,633 bpd.

In March the KRG published cumulative export data, noting that while it met its oil export commitments, the KRG has yet to receive its full entitlement per agreement under the Federal Budget Law of 2015.

Last week, in two separate meetings, the Kurdistan Region Prime Minister and a number of members of the Council of Ministers, met Kurdistan Region Baghdad representatives, and the Speaker of the Kurdistan Parliament along with Parliamentary groups.

The Prime Minister reaffirmed KRG’s commitment to the December agreement and the Iraqi 2015 Federal Budget Law. He pointed out, however, that if talks with Baghdad do not produce positive results and Baghdad continues its breach of the Federal Budget Law, then the KRG will have to consider other options to stabilise the Region’s financial security.